Why in the news?
The Pension Fund Regulatory and Development Authority (PFRDA) has constituted a high-level committee to frame guidelines and regulations for assured pension payouts under the National Pension System (NPS), aimed at strengthening retirement income security.
About the committee
- Chairperson: Dr. M. S. Sahoo, Former Chairperson, Insolvency and Bankruptcy Board of India (IBBI)
- Composition: 15 members from legal, actuarial, finance, insurance, capital markets and academia
- Flexibility: Power to invite external experts and intermediaries as special invitees
- Nature: Standing advisory committee on structured pension payouts
Key objectives and terms of reference
- Assured payout framework: Draft regulations for assured and structured pension payouts, based on PFRDA consultation paper dated 30 September 2025
- Seamless transition: Smooth shift from accumulation phase to decumulation payout phase
- Market based assurance: Explore novation and settlement mechanisms for legally enforceable guarantees
- Operational design: Define lock in period, withdrawal limits, pricing mechanisms and fee structures
- Risk and legal oversight: Specify capital and solvency norms and examine tax implications for in-system payouts
- Consumer protection: Standardised disclosure framework to prevent mis selling and manage subscriber expectations
Significance
- Enhances predictability and security of retirement income
- Strengthens trust and attractiveness of NPS
- Supports the vision of Viksit Bharat 2047 with financial dignity in old age
| [2017] Who among the following can join the National Pension System (NPS)?
(a) Resident Indian citizens only (b) Persons of age from 21 to 55 only (c) All State Government employees joining the services after the date of notification by the respective State Governments (d) All Central Governments Employees including those of Armed Forces joining the services on or after 1st April, 2004 |
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